Lilly Reports Second-Quarter 2015 Results, Revises 2015 Financial Guidance
- Revenue increased 1 percent with the inclusion of Novartis Animal Health and higher volume for several products, including Cyramza and Trulicity; these factors were largely offset by the unfavorable effect of foreign exchange rates and the residual impact of Cymbalta and Evista patent expirations.
- Second-quarter 2015 earnings per share were $0.56 (reported), or $0.90 (non-GAAP).
- 2015 EPS guidance has been revised to be in the range of $2.20 to $2.30 on a reported basis and $3.20 to $3.30 on a non-GAAP basis, reflecting solid underlying performance in the first six months of the year.
- Significant pipeline progress, including multiple regulatory approvals, submissions and positive Phase III data readouts, reinforce the company's commitment to its innovation-based strategy.
$ in millions, except per share data |
Second Quarter |
% |
|||||||
2015 |
2014 |
Change |
|||||||
Revenue - Reported |
$ |
4,978.7 |
$ |
4,935.6 |
1 |
% |
|||
Net Income - Reported |
600.8 |
733.5 |
(18) |
% |
|||||
EPS - Reported |
0.56 |
0.68 |
(18) |
% |
|||||
Revenue - non-GAAP |
4,978.7 |
5,211.2 |
(4) |
% |
|||||
Net Income - non-GAAP |
954.8 |
798.1 |
20 |
% |
|||||
EPS - non-GAAP |
0.90 |
0.74 |
22 |
% |
Certain financial information for 2015 and 2014 is presented on both a reported and a non-GAAP basis. Some numbers in this press release may not add due to rounding. Reported results were prepared in accordance with generally accepted accounting principles (GAAP) and include all revenue and expenses recognized during the period. Non-GAAP measures exclude the items described in the reconciliation tables later in the release. Non-GAAP measures in 2014 include the results of
"Lilly remains on track to return to growth in 2015, driven by strong underlying business performance, including uptake of our recently launched products - Jardiance, Trulicity and Cyramza," said
Key Events Over the Last Three Months
-
Cyramza® (ramucirumab) achieved a number of development and commercial milestones:
- Approved and launched in the U.S. in combination with FOLFIRI (irinotecan, folinic acid, and 5-fluorouracil) chemotherapy for the treatment of patients with metastatic colorectal cancer with disease progression on or after prior therapy with bevacizumab, oxaliplatin, and a fluoropyrimidine.
-
Launched in
Japan for patients with unresectable, advanced or recurrent gastric cancer. -
Submitted in
Japan for second-line metastatic colorectal cancer.
-
The Japan Ministry of Health, Labor and Welfare approved Trulicity™ (dulaglutide) as a treatment for type 2 diabetes. The company will co-promote Trulicity inJapan with Sumitomo Dainippon Pharma Co., Ltd. -
The U.S. Food and Drug Administration (FDA) approved Humalog® 200 units/mL KwikPen® (insulin lispro 200 units/mL; U-200), a pre-filled pen containing a concentrated formulation of Lilly's rapid-acting insulin Humalog® (insulin lispro 100 units/mL) to improve glycemic control in people with type 1 and type 2 diabetes. -
The European Commission granted marketing authorization for Synjardy® (empagliflozin/metformin) for the treatment of adults with type 2 diabetes. Synjardy is part of the company's diabetes collaboration with Boehringer Ingelheim. -
The
FDA issued a Complete Response Letter for Synjardy, for the treatment of adults with type 2 diabetes. Boehringer Ingelheim submitted their response to theFDA and received a Class 1 status for an expected decision within two months. -
The company is encouraged by the
FDA Oncologic Drugs Advisory Committee's review of data supporting necitumumab in combination with gemcitabine and cisplatin for use in first-line treatment of patients with advanced squamous non-small cell lung cancer. The company believes necitumumab represents a meaningful advancement.FDA action is expected by the end of the year. - The company submitted ixekizumab in the EU for moderate-to-severe plaque psoriasis.
- The company announced results from an extension of the Phase III solanezumab trials, indicating the treatment effect was preserved in patients with mild Alzheimer's disease, compared to patients who began treatment at a later point, further suggesting a potential disease-modifying effect on underlying disease progression.
-
The company announced collaborations with:
- AstraZeneca to evaluate the safety and preliminary efficacy of AstraZeneca's investigational anti-PD-L1 immune checkpoint inhibitor, MEDI4736, in combination with Cyramza, as a treatment for patients with advanced solid tumors.
-
Immunocore Limited to explore the utility ofImmunocore's lead T cell receptor-based investigational therapeutic, IMCgp100, in combination with Lilly's galunisertib and merestinib for the treatment of melanoma. -
Sarah Cannon Research Institute to co-develop an investigational oncology compound, LY3023414, a PI3K/mTOR dual inhibitor. -
BioNTech AG to discover novel cancer immunotherapies. -
Sanford-Burnham Medical Research Institute to discover and develop immunological therapies. -
Dana-Farber Cancer Institute to research new medicines under development to fight cancer.
-
The UK Court of Appeal ruled that the Alimta® (pemetrexed disodium) vitamin regimen patents would be indirectly infringed by a generic competitor that had stated its intent to market certain alternative salt forms of pemetrexed in the United Kingdom,France ,Italy and Spain prior to the patents' expiration in June 2021. -
The company announced plans to establish a new drug delivery and device innovation center in Cambridge,
Massachusetts , and to expand its existing research and development center inSan Diego, California . -
The company issued €2.1 billion of euro-denominated debt and repurchased
$1.65 billion principal amount of higher interest rate U.S. dollar-denominated debt.
Second-Quarter Reported Results
In the second quarter of 2015, worldwide revenue was
Gross margin remained relatively flat at
Operating expenses in the second quarter of 2015, defined as the sum of research and development and marketing, selling and administrative expenses, were
In the second quarter of 2015, the company recognized acquired in-process research and development charges of
In the second quarter of 2015, the company recognized asset impairment, restructuring and other special charges of
Operating income in the second quarter of 2015 was
Other income (expense) was an expense of
The effective tax rate was 11.6 percent in the second quarter of 2015, compared with 22.0 percent in the second quarter of 2014. The decrease in the 2015 effective tax rate was primarily due to the tax impact of the net charge related to the repurchase of debt, acquired in-process research and development charges, and asset impairment, restructuring and other special charges. The 2015 effective tax rate also reflected a net discrete tax benefit of approximately $24 million. Neither period includes the benefit of certain expired U.S. tax provisions, including the R&D tax credit.
In the second quarter of 2015, net income decreased 18 percent to
Second-Quarter 2015 Non-GAAP Measures
On a non-GAAP basis, worldwide revenue was
Gross margin decreased 1 percent to
Operating expenses in the second quarter of 2015 were
Other income (expense) was income of
The effective tax rate decreased to 20.8 percent, compared with 23.1 percent in the second quarter of 2014, due primarily to a discrete tax benefit of approximately
Net income increased 20 percent to
For further detail, see the reconciliation below as well as the Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information table later in this release.
Second Quarter |
||||||||
2015 |
2014 |
% Change |
||||||
Earnings per share (reported) |
$ |
0.56 |
$ |
0.68 |
(18)% |
|||
|
— |
(.02) |
||||||
|
.05 |
— |
||||||
Amortization of intangible assets |
.10 |
.08 |
||||||
Acquired in-process research and development |
.05 |
— |
||||||
Net charge related to repurchase of debt |
.09 |
— |
||||||
Asset impairment, restructuring and other special charges |
.05 |
— |
||||||
Earnings per share (non-GAAP) |
$ |
0.90 |
$ |
0.74 |
22% |
|||
Numbers may not add due to rounding. |
Year-to-Date Results
For the first six months of 2015, worldwide revenue remained relatively flat at
For further detail, see the reconciliation below as well as the Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information table later in this release.
Year-to-date |
||||||||
2015 |
2014 |
% Change |
||||||
Earnings per share (reported) |
$ |
1.06 |
$ |
1.36 |
(22)% |
|||
|
— |
(.05) |
||||||
|
.09 |
— |
||||||
Amortization of intangible assets |
.20 |
.16 |
||||||
Acquired in-process research and development |
.20 |
.02 |
||||||
Net charge related to repurchase of debt |
.09 |
— |
||||||
Asset impairment, restructuring and other special charges |
.12 |
— |
||||||
Earnings per share (non-GAAP) |
$ |
1.76 |
$ |
1.48 |
19% |
|||
Numbers may not add due to rounding. |
Select Revenue Highlights |
|||||||||||||||||||
(Dollars in millions) |
Second Quarter |
Year-to-Date |
|||||||||||||||||
2015 |
2014 |
% Change |
2015 |
2014 |
% Change |
||||||||||||||
Humalog® |
$ |
654.3 |
$ |
700.1 |
(7)% |
$ |
1,338.2 |
$ |
1,350.1 |
(1)% |
|||||||||
Alimta |
664.3 |
711.6 |
(7)% |
1,237.4 |
1,343.6 |
(8)% |
|||||||||||||
Cialis® |
567.9 |
567.8 |
0% |
1,106.2 |
1,100.2 |
1% |
|||||||||||||
Humulin® |
316.4 |
352.4 |
(10)% |
632.1 |
668.6 |
(5)% |
|||||||||||||
Forteo® |
328.4 |
308.6 |
6% |
621.4 |
608.9 |
2% |
|||||||||||||
Cymbalta |
274.1 |
401.3 |
(32)% |
561.1 |
879.5 |
(36)% |
|||||||||||||
Zyprexa® |
253.7 |
243.8 |
4% |
473.2 |
526.9 |
(10)% |
|||||||||||||
Strattera® |
191.8 |
197.4 |
(3)% |
365.5 |
351.8 |
4% |
|||||||||||||
Effient® |
128.8 |
133.6 |
(4)% |
250.6 |
252.9 |
(1)% |
|||||||||||||
Trajenta®(a) |
80.0 |
90.3 |
(11)% |
162.4 |
167.1 |
(3)% |
|||||||||||||
Cyramza |
87.7 |
13.7 |
NM |
155.2 |
13.7 |
NM |
|||||||||||||
Evista |
59.7 |
108.3 |
(45)% |
126.5 |
258.3 |
(51)% |
|||||||||||||
Animal Health |
840.8 |
601.2 |
40% |
1,590.5 |
1,128.6 |
41% |
|||||||||||||
Total Revenue |
4,978.7 |
4,935.6 |
1% |
9,623.4 |
9,618.7 |
0% |
|||||||||||||
(a)Trajenta revenue includes Jentadueto® |
|||||||||||||||||||
NM - not meaningful |
Humalog
For the second quarter of 2015, worldwide Humalog sales decreased 7 percent to
Alimta
For the second quarter of 2015, Alimta generated sales of
Cialis
Cialis sales for the second quarter of 2015 remained flat at
Humulin
Worldwide Humulin sales of
Forteo
Second-quarter 2015 sales of Forteo were
Cymbalta
For the second quarter of 2015, Cymbalta generated
Zyprexa
In the second quarter of 2015, Zyprexa sales totaled
Strattera
During the second quarter of 2015, Strattera generated
Effient
Effient sales were
Evista
Evista sales for the second quarter of 2015 were
In the second quarter of 2015, worldwide animal health sales totaled
Including the sales of
2015 Financial Guidance
The company has revised certain elements of its 2015 financial guidance on a reported basis and on a non-GAAP basis. Full-year 2015 earnings per share are now expected to be in the range of
2015 Expectations |
|
Earnings per share (reported) |
|
Amortization of intangible assets including the impact of the transfer of Erbitux rights |
.39 |
Acquired in-process research and development charges |
.21 |
Net charge related to repurchase of debt |
.09 |
Asset impairment, restructuring, integration and inventory step-up costs, primarily related to the acquisition of |
.31 |
Earnings per share (non-GAAP) |
|
Amortization and inventory step-up costs associated with the
The company now anticipates 2015 revenue of between
The company still expects that gross margin as a percent of revenue will be approximately 74.5 percent on a reported basis. On a non-GAAP basis, gross margin as a percent of revenue is still expected to be approximately 78.0 percent, reflecting the exclusion of inventory step-up costs associated with the acquisition of
Marketing, selling, and administrative expenses on a reported basis are still expected to be in the range of
Other income (expense) is now expected to be in a range between
The 2015 tax rate is now expected to be approximately 14.5 percent on a reported basis, primarily due to the tax impact of the net charge related to the repurchase of debt. The non-GAAP tax rate is now expected to be approximately 21.0 percent. Both rates assume a full-year 2015 benefit of the R&D tax credit and other tax provisions up for extension. If these items are not extended, the non-GAAP 2015 tax rate would be approximately 1.5 percentage points higher.
Capital expenditures are still expected to be approximately
The following table summarizes the company's 2015 financial guidance:
2015 Guidance |
|||
Prior |
Revised |
||
Revenue |
|
|
|
Gross Margin % of Revenue (reported) |
Approx. 74.5% |
Approx. 74.5% |
|
Gross Margin % of Revenue (non-GAAP) |
Approx. 78.0% |
Approx. 78.0% |
|
Marketing, Selling & Admin (reported) |
|
|
|
Marketing, Selling & Admin (non-GAAP) |
|
|
|
Research & Development |
|
|
|
Other Income/(Expense) (reported) |
|
( |
|
Other Income/(Expense) (non-GAAP) |
|
|
|
Tax Rate (reported) |
Approx. 16.5% |
Approx. 14.5% |
|
Tax Rate (non-GAAP) |
Approx. 21.5% |
Approx. 21.0% |
|
Earnings per share (reported) |
|
|
|
Earnings per share (non-GAAP) |
|
|
|
Capital Expenditures |
Approx. |
Approx. |
The company's 2015 financial guidance is subject to final acquisition accounting adjustments for the acquisitions of
Webcast of Conference Call
As previously announced, investors and the general public can access a live webcast of the second-quarter 2015 financial results conference call through a link on Lilly's website at www.lilly.com. The conference call will begin at
Lilly is a global healthcare leader that unites caring with discovery to make life better for people around the world. We were founded more than a century ago by a man committed to creating high-quality medicines that meet real needs, and today we remain true to that mission in all our work. Across the globe, Lilly employees work to discover and bring life-changing medicines to those who need them, improve the understanding and management of disease, and give back to communities through philanthropy and volunteerism. To learn more about Lilly, please visit us at www.lilly.com and http://newsroom.lilly.com/social-channels. F-LLY
This press release contains management's current intentions and expectations for the future, all of which are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The words "estimate," "project," "intend," "expect," "believe," "target," and similar expressions are intended to identify forward-looking statements. Actual results may differ materially due to various factors. There are significant risks and uncertainties in pharmaceutical research and development. There can be no guarantees with respect to pipeline products, that the products will receive the necessary clinical and manufacturing regulatory approvals or that they will prove to be commercially successful. The company's results may also be affected by such factors as the timing of anticipated regulatory approvals and launches of new products; market uptake of recently launched products; competitive developments affecting current products; the expiration of intellectual property protection for certain of the company's products; the company's ability to protect and enforce patents and other intellectual property; the impact of governmental actions regarding pricing, importation, and reimbursement for pharmaceuticals, including U.S. health care reform; regulatory compliance problems or government investigations; regulatory actions regarding currently marketed products; unexpected safety or efficacy concerns associated with the company's products; issues with product supply stemming from manufacturing difficulties or disruptions; regulatory changes or other developments; changes in patent law or regulations related to data-package exclusivity; litigation involving current or future products; the extent to which third-party indemnification obligations relating to product liability litigation and similar matters will be performed; unauthorized disclosure of trade secrets or other confidential data stored in the company's information systems and networks; changes in tax law and regulations; changes in inflation, interest rates, and foreign currency exchange rates; asset impairments and restructuring charges; changes in accounting standards promulgated by the
Alimta® (pemetrexed disodium, Lilly)
Cialis® (tadalafil, Lilly)
Cymbalta® (duloxetine hydrochloride, Lilly)
Cyramza® (ramucirumab, Lilly)
Effient® (prasugrel, Lilly)
Erbitux® (cetuximab, Bristol-Myers Squibb Company)
Evista® (raloxifene hydrochloride, Lilly)
Forteo® (teriparatide of recombinant DNA origin injection, Lilly)
Glyxambi® (empagliflozin/linagliptin, Boehringer Ingelheim)
Humalog® (insulin lispro injection of recombinant DNA origin, Lilly)
Humulin® (human insulin of recombinant DNA origin, Lilly)
Jardiance® (empagliflozin, Boehringer Ingelheim)
Jentadueto® (linagliptin/metformin, Boehringer Ingelheim)
Sentinel® (lufenuron and milbemycin oxime, Virbac)
Strattera® (atomoxetine hydrochloride, Lilly)
Synjardy® (empagliflozin/metformin, Boehringer Ingelheim)
Trajenta® (linagliptin, Boehringer Ingelheim)
Trulicity™ (dulaglutide, Lilly)
Zyprexa® (olanzapine, Lilly)
|
|
|
Worldwide Employees |
41,120* |
39,135 |
*Employment totals reflect additions from the acquisition of |
Eli Lilly and Company |
|||||||||||||||
Operating Results (Unaudited) - REPORTED |
|||||||||||||||
(Dollars in millions, except per share data) |
|||||||||||||||
Three Months Ended |
Six Months Ended |
||||||||||||||
|
|
||||||||||||||
2015 |
2014 |
% Chg. |
2015 |
2014 |
% Chg. |
||||||||||
Revenue |
$ |
4,978.7 |
$ |
4,935.6 |
1% |
$ |
9,623.4 |
$ |
9,618.7 |
0% |
|||||
Cost of sales |
1,218.4 |
1,189.7 |
2% |
2,411.1 |
2,412.4 |
0% |
|||||||||
Research and development |
1,169.5 |
1,195.4 |
(2)% |
2,208.8 |
2,304.7 |
(4)% |
|||||||||
Marketing, selling and administrative |
1,635.4 |
1,663.9 |
(2)% |
3,158.9 |
3,148.8 |
0% |
|||||||||
Acquired in-process research |
80.0 |
— |
NM |
336.0 |
— |
NM |
|||||||||
Asset impairment, restructuring and other special charges |
72.4 |
— |
NM |
180.4 |
31.4 |
NM |
|||||||||
Operating income |
803.0 |
886.6 |
(9)% |
1,328.2 |
1,721.4 |
(23)% |
|||||||||
Net interest income (expense) |
(16.2) |
(1.9) |
(35.7) |
(5.3) |
|||||||||||
Net other income (expense) |
(107.1) |
55.7 |
5.1 |
115.1 |
|||||||||||
Other income (expense) |
(123.3) |
53.8 |
NM |
(30.6) |
109.8 |
NM |
|||||||||
Income before income taxes |
679.7 |
940.4 |
(28)% |
1,297.6 |
1,831.2 |
(29)% |
|||||||||
Income taxes |
78.9 |
206.9 |
(62)% |
167.3 |
369.8 |
(55)% |
|||||||||
Net income |
$ |
600.8 |
$ |
733.5 |
(18)% |
$ |
1,130.3 |
$ |
1,461.4 |
(23)% |
|||||
Earnings per share - diluted |
$ |
0.56 |
$ |
0.68 |
(18)% |
$ |
1.06 |
$ |
1.36 |
(22)% |
|||||
Dividends paid per share |
$ |
0.50 |
$ |
0.49 |
2% |
$ |
1.00 |
$ |
0.98 |
2% |
|||||
Weighted-average shares outstanding (thousands) - diluted |
1,065,584 |
1,076,418 |
1,066,335 |
1,076,387 |
|||||||||||
NM - not meaningful |
Eli Lilly and Company |
||||||||||||||||||
Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information (Unaudited)(a) |
||||||||||||||||||
(Dollars in millions, except per share data) |
||||||||||||||||||
Three Months Ended June 30, 2015 |
Three Months Ended June 30, 2014 |
|||||||||||||||||
GAAP Reported |
Adjustments(c) |
Non-GAAP Adjusted |
GAAP Reported |
Adjustments(d) |
Non-GAAP Adjusted |
|||||||||||||
Revenue |
$ |
4,978.7 |
$ |
— |
$ |
4,978.7 |
$ |
4,935.6 |
$ |
275.6 |
$ |
5,211.2 |
||||||
Cost of sales |
1,218.4 |
(184.5) |
1,033.9 |
1,189.7 |
27.0 |
1,216.7 |
||||||||||||
Operating expenses(b) |
2,804.9 |
(35.8) |
2,769.1 |
2,859.3 |
115.1 |
2,974.4 |
||||||||||||
Acquired in-process research and development |
80.0 |
(80.0) |
— |
— |
— |
— |
||||||||||||
Asset impairment, restructuring and other special charges |
72.4 |
(72.4) |
— |
— |
— |
— |
||||||||||||
Other income (expense) |
(123.3) |
152.7 |
29.4 |
53.8 |
(35.5) |
18.3 |
||||||||||||
Income taxes |
78.9 |
171.3 |
250.3 |
206.9 |
33.3 |
240.2 |
||||||||||||
Net income |
$ |
600.8 |
$ |
354.1 |
$ |
954.8 |
$ |
733.5 |
$ |
64.6 |
$ |
798.1 |
||||||
Earnings per share - diluted
|
$ |
0.56 |
$ |
0.33 |
$ |
0.90 |
$ |
0.68 |
$ |
0.06 |
$ |
0.74 |
||||||
Numbers may not add due to rounding. |
(a) The company uses non-GAAP financial measures that differ from financial statements reported in conformity with U.S. generally accepted accounting principles (GAAP). The company's non-GAAP measures adjust reported results to exclude items that are typically highly variable, difficult to predict, and of a size that could have a substantial impact on the company's reported operations for a period. Non-GAAP adjusted amounts for 2014 assume the
(b) Operating expenses include research and development and marketing, selling and administrative expenses.
(c) Adjustments to certain GAAP reported measures for the three months ended
(Dollars in millions, except per share data) |
Amortization(i) |
IPR&D(ii) |
Inventory step-up(iii) |
Repurchase of debt(iv) |
Other specified items(v) |
Total Adjustments |
|||||||||||||
Revenue |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
|||||||
Cost of sales |
(116.1) |
— |
(68.4) |
— |
— |
(184.5) |
|||||||||||||
Operating expenses |
(35.8) |
— |
— |
— |
— |
(35.8) |
|||||||||||||
Acquired in-process research and development |
— |
(80.0) |
— |
— |
— |
(80.0) |
|||||||||||||
Asset impairment, restructuring and other special charges |
— |
— |
— |
— |
(72.4) |
(72.4) |
|||||||||||||
Other income (expense) |
— |
— |
— |
152.7 |
— |
152.7 |
|||||||||||||
Income taxes |
49.5 |
28.0 |
19.5 |
53.5 |
20.8 |
171.3 |
|||||||||||||
Net income |
$ |
102.4 |
$ |
52.0 |
$ |
48.9 |
$ |
99.3 |
$ |
51.6 |
$ |
354.1 |
|||||||
Earnings per share - diluted |
$ |
0.10 |
$ |
0.05 |
$ |
0.05 |
$ |
0.09 |
$ |
0.05 |
$ |
0.33 |
|||||||
Numbers may not add due to rounding. |
i. Exclude amortization of intangibles primarily associated with costs of marketed products acquired or licensed from third parties.
ii. Exclude costs associated with upfront payments for acquired in-process research and development projects acquired in a transaction other than a business combination. These costs included a
iii. Exclude inventory step-up costs associated with the acquisition of
iv. Exclude a net charge associated with the repurchase of
v. Exclude costs associated with restructuring to reduce the company's cost structure, asset impairments, and integration costs associated with the acquisition of
(d) Adjustments to certain GAAP reported measures for the three months ended
(Dollars in millions, except per share data) |
Novartis Animal |
Legacy |
Total Adjustments |
||||||
Revenue |
$ |
275.6 |
$ |
— |
$ |
275.6 |
|||
Cost of sales |
122.8 |
(95.8) |
27.0 |
||||||
Operating expenses |
151.4 |
(36.3) |
115.1 |
||||||
Acquired in-process research and development |
— |
— |
— |
||||||
Asset impairment, restructuring and other special charges |
— |
— |
— |
||||||
Other income (expense) |
(35.5) |
— |
(35.5) |
||||||
Income taxes |
(11.9) |
45.2 |
33.3 |
||||||
Net income |
$ |
(22.2) |
$ |
86.8 |
$ |
64.6 |
|||
Earnings per share - diluted |
$ |
(0.02) |
$ |
0.08 |
$ |
0.06 |
|||
Numbers may not add due to rounding. |
i. Inclusion of the results of
- Exclude results associated with the Sentinel® canine parasiticide franchise in the U.S., which was divested following the closing of the acquisition
- Exclude amortization of intangibles
- Exclude integration and inventory step-up costs
- Other miscellaneous adjustments.
ii. Exclude legacy amortization of intangibles primarily associated with costs of marketed products acquired or licensed from third parties.
Eli Lilly and Company |
||||||||||||||||||
Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information (Unaudited)(a) |
||||||||||||||||||
(Dollars in millions, except per share data) |
||||||||||||||||||
Six Months Ended June 30, 2015 |
Six Months Ended June 30, 2014 |
|||||||||||||||||
GAAP Reported |
Adjustments(c) |
Non-GAAP Adjusted |
GAAP Reported |
Adjustments(d) |
Non-GAAP Adjusted |
|||||||||||||
Total revenue |
$ |
9,623.4 |
$ |
— |
$ |
9,623.4 |
$ |
9,618.7 |
$ |
527.4 |
$ |
10,146.1 |
||||||
Cost of sales |
2,411.1 |
(364.9) |
2,046.2 |
2,412.4 |
57.9 |
2,470.3 |
||||||||||||
Operating expenses(b) |
5,367.7 |
(71.6) |
5,296.1 |
5,453.5 |
242.7 |
5,696.2 |
||||||||||||
Acquired in-process research and development |
336.0 |
(336.0) |
— |
— |
— |
— |
||||||||||||
Asset impairment, restructuring and other special charges |
180.4 |
(180.4) |
— |
31.4 |
(31.4) |
— |
||||||||||||
Other income (expense) |
(30.6) |
152.7 |
122.1 |
109.8 |
(55.7) |
54.1 |
||||||||||||
Income taxes |
167.3 |
357.4 |
524.7 |
369.8 |
68.0 |
437.8 |
||||||||||||
Net income |
$ |
1,130.3 |
748.3 |
$ |
1,878.5 |
$ |
1,461.4 |
134.5 |
$ |
1,595.9 |
||||||||
Earnings per share - diluted |
$ |
1.06 |
0.70 |
$ |
1.76 |
$ |
1.36 |
0.12 |
$ |
1.48 |
||||||||
Numbers may not add due to rounding. |
(a) The company uses non-GAAP financial measures that differ from financial statements reported in conformity with U.S. generally accepted accounting principles (GAAP). The company's non-GAAP measures adjust reported results to exclude items that are typically highly variable, difficult to predict, and of a size that could have a substantial impact on the company's reported operations for a period. Non-GAAP adjusted amounts for 2014 assume the
(b) Operating expenses include research and development and marketing, selling and administrative expenses.
(c) Adjustments to certain GAAP reported measures for the six months ended
(Dollars in millions, except per share data) |
Amortization(i) |
IPR&D(ii) |
Inventory step-up(iii) |
Repurchase of debt(iv) |
Other specified items(v) |
Total Adjustments |
||||||||||||
Revenue |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
||||||
Cost of sales |
(233.0) |
— |
(131.9) |
— |
— |
(364.9) |
||||||||||||
Operating expenses |
(71.6) |
— |
— |
— |
— |
(71.6) |
||||||||||||
Acquired in-process research and development |
— |
(336.0) |
— |
— |
— |
(336.0) |
||||||||||||
Asset impairment, restructuring and other special charges |
— |
— |
— |
— |
(180.4) |
(180.4) |
||||||||||||
Other income (expense) |
— |
— |
— |
152.7 |
— |
152.7 |
||||||||||||
Income taxes |
99.9 |
117.6 |
37.6 |
53.5 |
48.8 |
357.4 |
||||||||||||
Net income |
$ |
204.7 |
$ |
218.4 |
$ |
94.3 |
$ |
99.3 |
$ |
131.6 |
$ |
748.3 |
||||||
Earnings per share - diluted |
$ |
0.20 |
$ |
0.20 |
$ |
0.09 |
$ |
0.09 |
$ |
0.12 |
$ |
0.70 |
||||||
Numbers may not add due to rounding. |
i. Exclude amortization of intangibles primarily associated with costs of marketed products acquired or licensed from third parties.
ii. Exclude costs associated with upfront payments for acquired in-process research and development projects acquired in a transaction other than a business combination. These costs included a
iii. Exclude inventory step-up costs associated with the acquisition of
iv. Exclude a net charge associated with the repurchase of
v. Exclude costs associated with restructuring to reduce the company's cost structure, asset impairments, and integration costs associated with the acquisition of
(d) Adjustments to certain GAAP reported measures for the six months ended
(Dollars in millions, except per share data) |
|
Legacy Amortization(ii) |
Other specified items(iii) |
Total Adjustments |
||||||||
Revenue |
$ |
527.4 |
$ |
— |
$ |
— |
$ |
527.4 |
||||
Cost of sales |
246.1 |
(188.2) |
— |
57.9 |
||||||||
Operating expenses |
315.4 |
(72.7) |
— |
242.7 |
||||||||
Acquired in-process research and development |
— |
— |
— |
— |
||||||||
Asset impairment, restructuring and other special charges |
— |
— |
(31.4) |
(31.4) |
||||||||
Other income (expense) |
(55.7) |
— |
— |
(55.7) |
||||||||
Income taxes |
(30.8) |
89.4 |
9.4 |
68.0 |
||||||||
Net income |
$ |
(59.1) |
$ |
171.6 |
$ |
22.0 |
$ |
134.5 |
||||
Earnings per share - diluted |
$ |
(0.05) |
$ |
0.16 |
$ |
0.02 |
$ |
0.12 |
||||
Numbers may not add due to rounding. |
i. Inclusion of the results of
- Exclude results associated with the Sentinel® canine parasiticide franchise in the U.S., which was divested following the closing of the acquisition
- Exclude amortization of intangibles
- Exclude integration and inventory step-up costs
- Other miscellaneous adjustments.
ii. Exclude legacy amortization of intangibles primarily associated with costs of marketed products acquired or licensed from third parties.
iii. Exclude costs primarily associated with restructuring to reduce the company's cost structure.
Refer to:
Logo - http://photos.prnewswire.com/prnh/20031219/LLYLOGO
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/lilly-reports-second-quarter-2015-results-revises-2015-financial-guidance-300117685.html
SOURCE
News Provided by Acquire Media